BDAN's POSITION ON WINDFALL TAX
Key Points:
1. BDAN’s Position:
- Statement: The Bank Directors Association of Nigeria (BDAN) has distanced itself from the views of some bank chairmen regarding the proposed windfall tax on foreign exchange earnings.
- Chairman’s Comment: Mustapha Chike-Obi announced that BDAN will provide its official stance after its board meeting on August 12.
2. Bank Chairmen's Views:
- Femi Otedola (FBN Holdings Chairman): Supported the windfall tax, stating that revenue from the tax could fund essential public services like healthcare, education, and infrastructure. He highlighted that the tax would address public finance pressures and alleviate the cost-of-living crisis.
- Tony Elumelu (UBA Chairman): Endorsed the windfall tax, emphasizing that it would help reduce poverty and ensure mutual prosperity. He advocated for balancing the impact on businesses and ensuring economic stability.
- Ladi Balogun (FCMB Group CEO): Expressed support for the government’s reform agenda and the role of the banking sector in contributing to the economy.
3. Context and Reactions:
- Proposed Tax: The Federal Government plans a 70% windfall tax on banks' forex earnings from 2023 to 2025.
- Economic Impact: Bank chairmen see the tax as a means to address public service funding needs and correct economic disparities.
- Industry Response: BDAN’s official stance is pending, but individual bank leaders have largely supported the tax while advocating for balanced economic policies.
Key Points:
1. BDAN’s Position:
- Statement: The Bank Directors Association of Nigeria (BDAN) has distanced itself from the views of some bank chairmen regarding the proposed windfall tax on foreign exchange earnings.
- Chairman’s Comment: Mustapha Chike-Obi announced that BDAN will provide its official stance after its board meeting on August 12.
2. Bank Chairmen's Views:
- Femi Otedola (FBN Holdings Chairman): Supported the windfall tax, stating that revenue from the tax could fund essential public services like healthcare, education, and infrastructure. He highlighted that the tax would address public finance pressures and alleviate the cost-of-living crisis.
- Tony Elumelu (UBA Chairman): Endorsed the windfall tax, emphasizing that it would help reduce poverty and ensure mutual prosperity. He advocated for balancing the impact on businesses and ensuring economic stability.
- Ladi Balogun (FCMB Group CEO): Expressed support for the government’s reform agenda and the role of the banking sector in contributing to the economy.
3. Context and Reactions:
- Proposed Tax: The Federal Government plans a 70% windfall tax on banks' forex earnings from 2023 to 2025.
- Economic Impact: Bank chairmen see the tax as a means to address public service funding needs and correct economic disparities.
- Industry Response: BDAN’s official stance is pending, but individual bank leaders have largely supported the tax while advocating for balanced economic policies.